Toys ‘R’ Us has announced that they are closing their only two remaining retail stores for good. The toy retailer had just two stores nationwide after an attempted revival over the past year. One located in New Jersey and the other in Houston, Texas.
We covered the news of Toys ‘R’ Us and their attempted resurgence back in 2019. However it appears that the troubling landscape for retail in 2020 has meant that they have had to take the decision to shut up physical shops for the time being.
“As a result of Covid, we made the strategic decision to pivot our store strategy to new locations and platforms that have better traffic.”
“Consumer demand in the toy category and for Toys “R” Us remains strong, and we will continue to invest in the channels where the customer wants to experience our brand.”Tru Kids, Spokesperson
Whilst the demand for Toys & Games surged by 16% in 2020 as reported by CNBC it appears that the coronavirus pandemic is understandably still affecting the desire of shoppers to go to physical locations when they could stay at home and order online.
Tru Kids, the owners of the Toys ‘R’ Us trademark is owned by a group of investment funds including Solus Alternative Asset Management. Whilst closing their two physical stores they are still running a website that markets toys and then directs shoppers to Amazon.com to complete their purchases. It also continues to license the brand to stores in other markets around the world.
Whilst Toys ‘R’ Us are not the industry giant that they once were, it is sad to hear of another business which has been impacted by Coronavirus.
Only time will tell whether we will see another attempt from Toys ‘R’ Us to return to physical stores or whether they will continue to opt for online presence only.
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